Governor Paterson releases amendments Executive Budget
February 10th, 2010 - 2:36 am ICT by BNO News ( Leave a comment )ALBANY, NEW YORK (BNO NEWS) – New York Governor David Paterson on Tuesday released his 21-day amendments to the 2010-2011 Executive Budget.
As previously announced on February 3, the State must address an additional $750 million deficit through the end of 2010-2011, due to the further revenue deterioration related to the timing and composition of financial services sector compensation, and recession-driven increases in Medicaid entitlement enrollment.
Overall, the projected deficit that the State must address now totals $8.2 billion, up from $7.4 billion at the time of the Executive Budget.
The State financial plan includes the receipt of $1.06 billion in enhanced federal fiscal relief. This funding was put forward in President Obama’s budget, the House of Representatives’ Jobs for Main Street bill, and legislation sponsored by United States Senate Majority Leader Harry Reid and Senator Jay Rockefeller.
“Fiscal relief for State governments dealing with substantial budget deficits is a critical component of President Obama’s economic and financial recovery agenda,” Governor Paterson said. “I urge Congress and the New York delegation to swiftly enact this proposal and help prevent what would be even deeper cuts to vital public services at the local level.”
The proposal to allow the sale of wine in grocery stores would be amended to increase the required franchise fee for businesses with gross sales of over $1 million, producing additional revenue of $162 million in 2010-2011.
Overall, this franchise fee would now generate a total of $300 million over the next two years ($250 million in 2010-2011 and $50 million in 2011-2012). This revenue would be dedicated to financing rising, recession-driven Medicaid costs and preventing deeper cuts to health care programs.
Governor Paterson also proposed amending a Mobility Tax that would ensure that the MTA will receive previously projected Mobility Tax revenues in 2010 and in future years, by increasing the tax on New York City businesses from .34 percent to .54 percent of payroll.
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Tags: bno, budget deficits, critical component, david paterson, financial services sector, fiscal relief, franchise fee, gross sales, health care programs, jay rockefeller, medicaid costs, obama, senate majority leader, senate majority leader harry, senate majority leader harry reid, senator jay rockefeller, state governments, united states senate, united states senate majority leader, york delegation
